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Research On Corporation Real Option Theory And Techniques

Posted on:2003-03-26Degree:MasterType:Thesis
Country:ChinaCandidate:H Y TangFull Text:PDF
GTID:2156360062995336Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In support of the Scientific Research Program of Hebei Province Education Bureau, I selected "Research of Corporation Real Option Theory and Techniques" as the name of my dissertation.The traditional investment decision-making method cannot satisfy the demand of corporation's adaptation to the competition environment, but the real option theory regards opportunities and flexibilities as options to analyze. The real option method is an important development of the decision-making theory and method because it takes full account of the flexibilities' value. This research has important theoretical meanings and practical value.Based on my reference to large number literatures and combined with the practical corporations' investment, this dissertation made thorough analysis about the real option theory and method. This dissertation's main content includes: 1 .It analyzed the values of investment opportunities and managerial flexibilities and discussed the investment decision-making techniques and their excellence and shortcomings especially the limitations of the NPV principle and pointed out that these limitations could be avoided by the application of the real options theory. 2. This dissertation emphasized the real option theory and techniques and analyzed the special properties, classification and pricing theory of real options and it made sensitivity analysis about the real option value and got sensitivity of the factors of real option. 3.It concluded the common analyzing framework of the corporation real option method.4.It also applied the fuzzy theory into the valuation of multiple real options and illustrated this method with an example. This method combines the subjectivity and the objectivity, the quantity and the quality. It takes full advantage of the uncertainty and the fuzziness that among the valuation of the capital budgeting so that we can get accurate results using this method. 5. It analyzed the application of real option theory in the strategic investment and corporation merger and put forward a multi-stage investment method. 6.It discussed the main problems in the investment decision-making process of domestic corporation and analyzed the construction of a flexible decision-making system.
Keywords/Search Tags:investment decision-making, real options, NPV principle, managerial flexibilities, option-pricing theory
PDF Full Text Request
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